To book a holiday with savings over paying off debt?

[GretaGarboandMonroe]

Situation is : £3k savings but £3k debt. Shall I clear the debt with the savings or stick to the monthly payments over the next year and go on holiday with the savings? DH in desperate need of a break as very stressed and overworked. But it would feel amazing to clear the annoying debt. Help me decide please!

I couldn’t enjoy my holiday being in debt so it’s a no from me but it wouldn’t stop me planning one for after it was cleared.

Same. Not sure I could enjoy the holiday knowing it could have repaid the debt. I'd re-pay and plan for next year.

Hmm well we always put our holiday on a 0% credit card and pay it off over the year so I’d go for the holiday but I’m the sort of person who lives in the moment (long term health issues have made me embrace doing stuff whilst I can).

I guess it's personal but for me debt=stress, so clearing that would be far more effective at reducing stress than a holiday which I find stressful anyway - resting at home vegging out is low stress.

I would repay the debt and park the holiday until next year. The sooner that you repay it, the less you will be charged in interest.

I’d compromise.

The smartest thing would be paying off the debt first. However, mental health is also important too.

I would book a 3-4 night holiday for 1K and pay 2k off my debt. Then I’d have smaller repayments per month and feel like that’s a happy compromise

Take some time off work and spend up to £500 on nice days out and use the rest to pay off the debt.

Pay off the debt then use the monthly payments you would have needed for your debt to pay for a holiday. Jet2 offer monthly payments and I’m sure others do.

I’d do this too. Plenty of nice breaks to be had for £1000

Your husband doesn't need to go on holiday to have a break from work. Why not take a week off, stay home and do some fun things locally?

Clear the savings. A holiday isn’t essential, your DH could take some time off and be at home to destress and you would both be a lot more stressed if you have difficult paying off the loan over the next year/something happens that means you struggle. I also wouldn’t spend all my savings on a holiday, you need a good amount in savings first and then save for a holiday. Pay the loan, build up savings again and then save for a holiday.

Could you take time off work and stay with family or do nice things near where you live? Wouldn’t need to cost anywhere near £3k but would give you a break.

I would be very wary of being left with zero savings!

A holiday doesn't need to be away from home spending money. We have had lots of great staycations. Days out and meals out, sunning in the garden. Especially this year. A break is a break. You don't need to spend thousands to get a break from the everyday work and stress.

This does depend on where you live I suppose, so that would be a caveat. A house with a garden, great, a flat in a city less so. But even then there are parks, museums, lidos, etc etc

Definitely this! You can book a week in a cottage for less than £1k. No stress, no cleaning, no work. Then get back and focus on budgeting.

Clearing the debt should reduce the stress.

Going on holiday would just be increasing your debt as you'd still have the debt but not have the savings.

Id do £2K on a holiday and £1K on reducing the debt

See to debt first pay it off

Debt first. The feeling of knowing you’re debt free is such a relief

Stick to the monthly repayments to pay off the debt and book the holiday.

I’d say debt first. My mental health would be far better knowing I’m debt free than from a 1 week holiday we can’t afford & then back to debt.

I vote for cheaper holiday and pay off debt. Presumably you are saving some money each month, so for the next 2-3 months put this towards the holiday instead.

This is a good plan. ^^

Also, think about day trips & a picnic in the UK. A day out to the sea side or somewhere completely different from home is a real tonic.

A long weekend is also good. Go near to home so not too much driving. Do you have friends with a caravan? Could you borrow it?

Pay off the debt & look towards next year being debt free. It’s lush!

What type of debt is it, are you paying high interest rates?

Using the savings to have a holiday puts you in a worse position, not better. So I would use the savings to clear the debt. Then you can start putting money by to build up the savings again.

I would feel very insecure not having even a small cushion of savings to be able to replace something essential like the boiler or car. I'd also feel uneasy using the savings to clear the debt. But if you don't, you'll just accrue more debt. Would you genuinely feel OK having a holiday that leaves you with no savings and an increasing debt commitment?

Holidays are just lovely, no doubt about that. But they are a luxury, not an essential. You can still have nice times without spending much.

Pay the debt. It may reduce your husband's stress.